Dahin
Feb 2, 2011, 04:59 PM
Sales 6000 in March
50% increase in April
Company will maintain 5% of expected unit sales For April ending inventory
Beginning Inv. For April 200 units
ukaserex
Jun 29, 2011, 02:50 PM
Sales 6000 in March
50% increase in April
Company will maintain 5% of expected unit sales For April ending inventory
Beginning Inv. For April 200 units
With a 50% increase in Sales for April, that means they will sell 9000 units.
6000*50%= 3000. 3000 +6000 = 9000.
The company has 200 units to start with. So they need 8800 to have enough - but - they want to have 5% of "expected unit sales" (which is .05 *9000 = 450)to start for the next month.
So, 8800 + 450 =9250 is the total production required by the company.